Cleveland-Cliffs (NYSE:CLF) Shares Gap Up Following Strong Earnings

Shares of Cleveland-Cliffs Inc. (NYSE:CLF) gapped up before the market opened on Monday following a stronger than expected earnings report. The stock had previously closed at $12.12, but opened at $14.20. Cleveland-Cliffs shares last traded at $13.17, with a volume of 13,228,994 shares.

The mining company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.04. Cleveland-Cliffs had a negative return on equity of 13.37% and a negative net margin of 4.56%. The business had revenue of $5.61 billion for the quarter, compared to the consensus estimate of $5.69 billion. During the same quarter in the prior year, the business posted ($0.51) EPS. The business’s revenue for the quarter was up 18.5% on a year-over-year basis.

Key Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Profitability significantly improved. Cleveland-Cliffs reported third-quarter GAAP net income of approximately $165 million, or $0.26 per diluted share, compared with a loss in the prior-year period. Adjusted earnings of $0.28 per share exceeded the $0.24 analyst consensus estimate. Cleveland-Cliffs Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Higher steel prices and volumes supported results. Revenue reached roughly $5.6 billion, up 18.5% year over year, while steel shipments totaled 4.2 million net tons. Adjusted EBITDA of $612 million also exceeded Wall Street expectations of about $601 million. Cleveland-Cliffs Expects 2027 Will Be a Very Good Year
• Positive Sentiment: Investors responded favorably to the company’s outlook. Management reportedly expects 2027 to be a strong year, with tariffs potentially providing additional support for domestic steel producers. This outlook helped reinforce expectations for improved pricing and earnings. Cleveland-Cliffs Stock Jumps on Rosy Outlook
• Neutral Sentiment: Revenue was solid but slightly below one estimate. Reported revenue of $5.61 billion trailed the $5.69 billion consensus cited by MarketBeat, although other data showed a modest revenue surprise. The company remains challenged by a negative net margin and elevated leverage, which could limit the stock’s upside if steel prices weaken. Cleveland-Cliffs Earnings Results

Analysts Set New Price Targets

Several brokerages have commented on CLF. UBS Group set a $13.00 price target on shares of Cleveland-Cliffs in a research note on Monday, September 7th. Bank of America lowered their target price on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating for the company in a report on Thursday, July 9th. Wells Fargo & Company raised shares of Cleveland-Cliffs from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $12.00 to $14.00 in a research report on Tuesday, October 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cleveland-Cliffs in a research report on Tuesday, July 21st. Finally, Barclays reissued an “underweight” rating and issued a $11.00 price target on shares of Cleveland-Cliffs in a research report on Monday. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $12.45.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Sei Investments Co. boosted its holdings in Cleveland-Cliffs by 95.4% during the first quarter. Sei Investments Co. now owns 302,972 shares of the mining company’s stock worth $2,560,000 after buying an additional 147,899 shares in the last quarter. Quantinno Capital Management LP grew its position in Cleveland-Cliffs by 68.0% during the first quarter. Quantinno Capital Management LP now owns 212,522 shares of the mining company’s stock worth $1,796,000 after buying an additional 86,036 shares during the period. SFE Investment Counsel acquired a new position in Cleveland-Cliffs during the second quarter worth about $8,562,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Cleveland-Cliffs in the second quarter valued at about $505,000. Finally, California State Teachers Retirement System grew its holdings in shares of Cleveland-Cliffs by 23.0% in the 1st quarter. California State Teachers Retirement System now owns 662,180 shares of the mining company’s stock worth $5,595,000 after acquiring an additional 123,660 shares during the period. Hedge funds and other institutional investors own 67.68% of the company’s stock.

Cleveland-Cliffs Trading Up 12.5%

The firm has a market cap of $7.78 billion, a price-to-earnings ratio of -8.41, a PEG ratio of 5.73 and a beta of 2.09. The business has a fifty day moving average of $12.01 and a two-hundred day moving average of $11.25. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.63 and a current ratio of 1.89.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is an integrated steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, including the mining and processing of iron ore, production of iron ore pellets, and manufacturing of finished steel products.

Cleveland-Cliffs primarily produces flat-rolled carbon steel, including hot-rolled, cold-rolled and galvanized products, as well as coated and specialty steel. Its products are used in automotive manufacturing, construction, infrastructure, appliances, machinery and other industrial applications.